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How the Higg BRM Supports CSRD Reporting Obligations
Now Available: Download our white paper on Higg BRM Alignment with CSRD. See how the tool supports companies in meeting their regulatory reporting obligations.
Higg FEM Verification
Verification improves the consistency, comparability and credibility of Higg Index data.
Higg FEM Verification Journey
Higg FEM verifications grew at a compounded annual growth rate of 60 percent since the verification program was launched in CY2018. This growth has helped the industry adopt a unified environmental assessment tool for their supply chains. Higg FEM verifications are conducted in more than 80 countries worldwide, and from 2019 to 2022, the number of Higg FEM verifiers increased 70 percent, from 230 to 390. This growth has presented various challenges and Cascale recognizes the need for improvement in data quality derived from verified Higg FEM.
Verification of Higg FEM
Higg FEM addresses various needs from different stakeholders. The assessment captures a range of aspects of a facility’s environmental impact, including:
Past Approach
During the FEM 2021 cadence (CY2022), every single section of the Higg FEM had over 50 percent of facilities unable to cross Level 1. The same trend is observed in verified-assessments of the same cadence, meaning that a critical number of the facilities within the program have not achieved Level 1. In order to accomplish transformative changes within the industry, we need to design programs that reach and are catered to this cross-section of facilities, at a minimum.
Based on feedback from brands having rolled out Higg FEM to large portions of their suppliers, a majority of them mostly need reliable data on foundational environmental performance and specific quantitative metrics data.
While the Higg FEM tool addresses various needs, the verification approach to date has largely maintained a legacy framework. Based on the challenges presented and feedback from members, it is clear that there cannot be a one-size-fits-all verification approach. Additionally, Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) regulations emerging in the European Union are also contributing to the need for change.
What’s Changing
Verification for Higg FEM in CY2024 will be narrowed to a subset of questions, identified as a “core” set. The intention for introducing the core verification approach is to mitigate cost increase, maintain verifier availability and address quality concerns that have been raised in past cadences, and would be compounded by the lengthier FEM 4.0 update.
Core verification is a verified Higg FEM that only includes a subset of the full Higg FEM question set, aimed at verifying Higg FEM questions related to foundational environmental practices and select quantitative metrics data.
Watch the FAQ video to learn more about the changes coming to the verification process.
“Foundational Environmental Performance” refers to the essential good practices that a business must demonstrate in order to operate responsibly and sustainably. The specific criteria for including FEM questions in the Foundational Environmental Performance subset are:
These are questions or REFIDs which provide data points that help to calculate a facility’s total GHG emissions and water consumption.
Please review Appendix C of the Higg FEM Verification Protocol to learn more about the specific questions included.
We are continuously evolving our tools and verification programs to better meet the needs of our members.The core verification approach helps to address the needs of brands and retailers, while contributing to our commitment to the highest standards of data quality.
The Future of Verification
In order for the verification program to bring value to its various stakeholders, Cascale is launching a verification evolution project.
Cascale strives to build a verification program that is
Cascale has identified three pillars that are essential for evolving the program. These pillars include a host of interdependent activities, some of which are outlined in the corresponding image.
Verification Outcome: Verified Scores
With FEM verification now only covering only a subset of the full FEM assessment, verified FEM scores will become only partially verified FEM scores. Cascale is assessing alternative metrics which align with the proposed core verification approach that could potentially support the brand’s internal processes. Please stay tuned for more details.
Verification Access Fees
Prior to May 2023, the Higg FEM verification fee was collected on Worldly, and passed to Cascale, who manages the program. In order to streamline the process, provide more transparency, and better align with common industry practice, this fee will now be collected by the verifying body, and passed to Cascale. The amount of the Higg FEM verification fee remains unchanged at $300 USD.
Your Higg FEM will be automatically enabled for verification so you can easily share your data with verification bodies – it’s simply a matter of choosing an organization and working directly with them.
It is also important to note that this change also affects the equivalent vFSLM module fee, which will no longer be charged on the Worldly platform, resulting in a net savings for facilities undergoing Higg FSLM verification.
Verification Access Fees support the ongoing content and methodology development of the Higg Index, associated programs, and verification protocols, which are essential to drive collective industry action. Fees associated with Verification shall be negotiated and agreed upon between the organization requesting the Verification and the Verifier Body.
Please find more details at the links below:
Higg FEM 4.0 Update
This groundbreaking tool is designed to bring better data quality, alignment with global standards, and an improved user experience. As part of the Higg Index suite of tools, Higg FEM 4.0 is positioned as the most comprehensive assessment for environmental performance in the consumer goods industry!